Virgin Australia Holdings (ASX:VGN) Operating Income: A$506 Mil (TTM As of Dec. 2025)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

ASX:VGN Virgin Australia Holdings Ltd ASX:VGN
8 GF Score
Price A$2.80
! 5 Warning Signs
View Full Analysis

What is Virgin Australia Holdings Operating Income?

Virgin Australia Holdings ASX:VGN +5.66% 8 Operating Income is A$506 Mil as of Dec. 2025. GuruFocus rates ASX:VGN with a GF Score™ of 8/100. The stock has 5 warning signs investors should review.

Virgin Australia Holdings's Operating Income for the six months ended in Dec. 2025 was A$430 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was A$506 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Virgin Australia Holdings's Operating Income for the six months ended in Dec. 2025 was A$430 Mil. Virgin Australia Holdings's Revenue for the six months ended in Dec. 2025 was A$3,309 Mil. Therefore, Virgin Australia Holdings's Operating Margin % for the quarter that ended in Dec. 2025 was 12.99%.

Virgin Australia Holdings's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Virgin Australia Holdings's annualized ROC % for the quarter that ended in Dec. 2025 was 13.21%. Virgin Australia Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 34.91%.

Virgin Australia Holdings  (ASX:VGN) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Virgin Australia Holdings's annualized ROC % for the quarter that ended in Dec. 2025 is calculated as:

ROC % (Q: Dec. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2025 ) + Invested Capital (Q: Dec. 2025 ))/ count )
=859.8 * ( 1 - 7.59% )/( (6174.4 + 5858.9)/ 2 )
=794.54118/6016.65
=13.21 %

where

Invested Capital(Q: Jun. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=4872.1 - 581.9 - ( 1163.1 - max(0, 3455.5 - 1571.3+1163.1))
=6174.4

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=5191.1 - 610.1 - ( 1341.5 - max(0, 3033.8 - 1755.9+1341.5))
=5858.9

Note: The Operating Income data used here is two times the semi-annual (Dec. 2025) data.

2. Joel Greenblatt's definition of Return on Capital:

Virgin Australia Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2025 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2025  Q: Dec. 2025
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=977.6/( ( (2712.6 + max(-2303.8, 0)) + (2887.9 + max(-2204.7, 0)) )/ 2 )
=977.6/( ( 2712.6 + 2887.9 )/ 2 )
=977.6/2800.25
=34.91 %

where Working Capital is:

Working Capital(Q: Jun. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(367.7 + 29 + 11.5) - (581.9 + 1766.2 + 363.9)
=-2303.8

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(306.7 + 33.1 + 74.6) - (610.1 + 2.5 + 2006.5)
=-2204.7

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Dec. 2025) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Virgin Australia Holdings's Operating Margin % for the quarter that ended in Dec. 2025 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2025 )/Revenue (Q: Dec. 2025 )
=429.9/3308.6
=12.99 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Virgin Australia Holdings Operating Income Related Terms

Virgin Australia Holdings Operating Income Historical Data

* Premium members only.

The historical data trend for Virgin Australia Holdings's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Virgin Australia Holdings Operating Income Chart

Virgin Australia Holdings Annual Data
Trend Jun23 Jun24 Jun25
Operating Income
240.00 682.00 405.60

Virgin Australia Holdings Semi-Annual Data
Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Operating Income Get a 7-Day Free Trial 572.00 110.00 330.00 75.60 429.90
ASX:VGN
8GF Score
Virgin Australia Holdings Ltd ASX:VGN
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Virgin Australia Holdings Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 adds up the semi-annually data reported by the company within the most recent 12 months, which was A$506 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of A$506 Mil mean?
Virgin Australia Holdings (ASX:VGN) has a Operating Income of A$506 Mil as of Dec. 2025. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Virgin Australia Holdings and its competitors.
Is Virgin Australia Holdings' Operating Income too high?
Virgin Australia Holdings' current Operating Income is A$506 Mil. Overall, Virgin Australia Holdings has a GF Score™ of 8/100, reflecting its overall financial health beyond just this single metric.
How does Virgin Australia Holdings' Operating Income compare to DAL and UAL?
Virgin Australia Holdings' Operating Income of A$506 Mil can be compared against companies in the Transportation industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Transportation company?
A good Operating Income depends on the Transportation industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Virgin Australia Holdings and its competitors. Virgin Australia Holdings's current Operating Income is A$506 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Virgin Australia Holdings stock overvalued right now?
Virgin Australia Holdings (ASX:VGN) has a current Operating Income of A$506 Mil. The current Operating Income is A$506 Mil. Virgin Australia Holdings' overall GF Score™ is 8/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Virgin Australia Holdings (ASX:VGN), the current Operating Income is A$506 Mil as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Virgin Australia Holdings Business Description

Address 275 Grey Street, Level 11, South Brisbane, Brisbane, QLD, AUS, 4101
Virgin Australia is Australia's second-largest airline, operating about a third of the domestic market in a two-player market with Qantas. Virgin is a value-focused carrier operating high-frequency, point-to-point domestic routes and select short-haul international flights. The airline targets leisure and small to medium enterprise travelers with mid-range pricing. The vast majority of revenue is generated by the core airlines segment.
8GF Score

Get the complete analysis for ASX:VGN

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

A$2.80
Price